Life Insurance Corporation of India (LIC) on Saturday denied allegations made in a Washington Post report, calling the claims “false, baseless, and far from the truth.” The State-owned insurer said all its investment decisions are made independently and after due diligence.
In an official statement, LIC said, “The allegations levelled by The Washington Post that the investment decisions of LIC are influenced by external factors are false, baseless, and far from truth.”
The clarification came a day after the US-based publication reported that around $3.9 billion had been channelled into Adani Group companies through the State-owned insurer, allegedly as part of a government plan to aid the conglomerate’s finances.
The Washington Post report, published on October 24, alleged that the Indian government had devised an aid plan for the Adani Group to address its rising debt levels. Both the Adani Group and the LIC have denied any involvement in such a plan.
LIC strongly denied the existence of any such plan or document. “No such document or plan as alleged in the article has ever been prepared by the LIC which creates a roadmap for infusing funds into the Adani Group of companies,” the insurer said.
The corporation further said that all investment decisions are taken by its board of directors in line with approved policies and after thorough due diligence. “The Department of Financial Services or any other body does not have any role in such decisions,” it added.
The insurer said the claims appeared to have been made “with the intention to prejudice the well-established decision-making process” of the company and to “tarnish its reputation and image in the Indian market.”
The LIC reiterated that it follows “the highest standards of due diligence” and that all investment decisions comply with existing policies, statutory provisions and regulatory guidelines, made “in the best interests of all stakeholders.”